Rod Gribble, president of Australian Custom Harvesters, told ABC: “If we want to pass it [cost] For farmers, this is probably an extra $ 140 to $ 150 extra for insurance only. I don’t think it’s sustainable at all. ”
To discuss these insurance challenges, which Gribble said the contract put the harvesting industry at risk, Australian custom harvesters plan to meet with actors to explain how contract cutters work and how to mitigate their risks.
At the same time, farmers are rushing to get insurance cover for their crops. Jonathan Barrett, managing director of weather insurer Celsius Pro, said the company has received a flurry of requests from farmers for more insurance cover following recent rains and hailstorms and long-term forecasts across New South Wales (NSW).
“Over the last two to three weeks, we’ve had absolutely flat chats to get from the farmer’s paddock and the risks that exist in that market,” Barrett said, according to an ABC report. “When you look at climate change and climate variability, it keeps growing [and] We are seeing more farmers accepting these covers. ”
Barrett cited higher insurance demand in northwestern NSW and southwestern Queensland, which gave the regions a ‘three to four year price’ forecast of drought and natural disasters.
As insurance demand and prices rise, Insurance Council of Australia A statement issued acknowledging that it is becoming more difficult for many businesses, including agriculture and farming, to take out insurance and continue to pay premiums.
“Globally, insurance is now known as a tight market, meaning access to capital is limited and insurers’ underlying costs are rising,” said an ABC spokesman, as reported by ABC. “But at the same time, insurers themselves are under pressure to deliver a profitable product, so solutions are often difficult to determine.”
The ICA has conducted an independent strategic review of insurance commercial lines to address insurance issues.